Case Analysis On Convertible Bond Financing Of Goertek

Convertible bond is a new type of financial derivatives that are based on corporate bonds and enable their holders to convert into common stocks of the company at an agreed price for a certain period of time.Convertible bond is a kind of bond with stock option,which has advantages over traditional debt financing and equity financing.Goertek Inc.is a leading enterprise in China's electro-acoustic industry.Its products are mainly used in the field of intelligent consumer electronics.Due to the ever-changing industrial pattern and increasingly fierce competition in the industry,the company's management decided to carry out a strategic transformation after assessing the situation.In2014,the company raised funds through the issuance of convertible bonds,and invested the investment funds in the most advanced product research and development.This financing not only has a positive impact on the company's performance,but also optimizes the company's shareholding structure and enhances the company's governance effect.In the fierce market competition and the change of industrial pattern,it is worth studying how Goertek can obtain financing through convertible bonds and what kind of enlightenment and reference it has for the electroacoustic industry.The thesis adopts the research method of case analysis.The theoretical part describes the concept and characteristics of convertible bonds,the application of convertible bond financing and the relevant theoretical basis;then introduces the general situation of the convertible bond issue by Goertek,including the company's basic information,operation status and issued convertible bonds before the financial position,the clause design of convertible bonds,the timing of issuance and the circumstances of share conversion.The case analysis part analyzes the successful issuance and successful conversion of Goertek's convertible bond from multiple perspectives.This part analyzes the feasibility of issuing convertible bonds for financing,the rationality of the design of convertible bond terms,the scientific nature of pricing and the impact on the financial performance and shareholding structure of Goertek in detail.The research results show that Goertek chose to issue convertible bonds for financing after comprehensive analysis of the company's own situation,Goertek reasonably designed the terms of convertible bond at the same time,and the purpose of underpricing issuing convertible bonds is to attract investors.The issuance of convertible bonds not only effectively improved the financial performance of Goertek but also optimized the company's shareholding structure.Finally,the thesis gives some suggestions on issuing convertible bonds from the aspects of enterprises themselves and macro environment.The research of the thesis has universal applicability to the problem of using the convertible bond financing in China's electro-acoustic industry,and it also provides operational basis and theoretical guidance for the companies that choose to conduct financing through issuing convertible bonds.